More M3 Money!

Porkopolis Economics: Episode 159

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Porkopolis Economics covers macroeconomics, money, and sports from the creator of the Crypto Voices podcast, Matthew Mezinskis.

M3 = M2 + Institutional time deposits + Institutional money market funds + Repurchase agreements + Eurodollars. In this video, I discuss the third component of this money supply: repurchase agreements, or Repos. Eurodollars are the fourth component, but at the moment, no one in the world knows how large this component of M3 really is!

For more info on Repurchase agreements, see this video: https://www.youtube.com/watch?v=tM3hkgJ8m18

Repurchase agreement data sourced from the Federal Reserve, Main exhibit Z.1 Financial Accounts of the United States, Section L.207 Federal Funds and Security Repurchase Agreements, n.s.a.

Contents:
00:00:00 - Institutional Money Supply: M3 Components
00:03:08 - Money Market Funds Lending Treasuries to Hedge Funds
00:04:44 - The Creation of Money Through Repurchase Agreements
00:06:46 - The Evolving Landscape of M3 and Repurchase Agreements
00:09:21 - The Rise of Shadow Banking and the Disappearance of M3
00:11:43 - The Widening Spread Between M3 and M2 Before and After the GFC
00:13:17 - Analyzing Monetary Supply Indicators and Federal Reserve Repo Involvement
00:14:58 - The Federal Reserve's Repo Agreements with Non-Banks
00:17:04 - The Narrowing Spread in Fed Repos and Bank Reserves
00:20:05 - Understanding Eurodollars: Offshore Dollar Balances
00:22:22 - Understanding the US Monetary System: A Comprehensive Overview

Host: Matthew Mezinskis
https://porkopolis.io
Twitter: https://x.com/crypto_voices?lang=en

Show content is not investment or financial advice in any way.